consolidation loan

American

noun

a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period.

consolidation loan British

noun

a single loan which is taken out to pay off several separate existing loans

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

WSJ | Buy Side: A debt consolidation loan can help you streamline credit cards and other high-interest debt, but access to the lowest-rate debt consolidation loans often requires a higher credit score.

From The Wall Street Journal • Mar. 2, 2026

One way to simplify things is to take out a consolidation loan, turning lots of smaller, more frequent payments into one payment on a simpler schedule.

From MarketWatch • Jan. 8, 2026

If they combine their federally backed loans into a federal direct consolidation loan before Wednesday, their previous payments on those loans will automatically be eligible for review.

From Los Angeles Times • Apr. 29, 2024

With a debt consolidation loan, you’ll only owe one lender instead of multiple.

From Slate • Feb. 5, 2024

One option may be consolidating your credit cards under a 0% balance-transfer card or a debt consolidation loan, which saves money on interest and frees up additional cash.

From Seattle Times • Sep. 20, 2023

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023